GEOJIT FINANCIAL SERVICES 2023-24 Annual Report Analysis

Tue, 25 Jun

GEOJIT FINANCIAL SERVICES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

GEOJIT FINANCIAL SERVICES Income Statement Analysis

• Operating income during the year rose 39.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 54.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.1% in FY24 as against 33.6% in FY23.
• Depreciation charges increased by 0.4% and finance costs increased by 109.3% YoY, respectively.
• Other income grew by 18.0% YoY.
• Net profit for the year grew by 48.5% YoY.
• Net profit margins during the year grew from 22.0% in FY23 to 23.3% in FY24.

GEOJIT FINANCIAL SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,393	6,141	39.8%
Other income	Rs m	83	98	18.0%
Total Revenues	Rs m	4,476	6,240	39.4%
Gross profit	Rs m	1,475	2,280	54.6%
Depreciation	Rs m	288	290	0.4%
Interest	Rs m	81	169	109.3%
Profit before tax	Rs m	1,189	1,920	61.4%
Tax	Rs m	225	488	116.9%
Profit after tax	Rs m	965	1,432	48.5%
Gross profit margin	%	33.6	37.1
Effective tax rate	%	18.9	25.4
Net profit margin	%	22.0	23.3

Don't Miss: Key Information for Long-term Investors

GEOJIT FINANCIAL SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 112.4%.
• Current assets rose 46% and stood at Rs 13 billion, while fixed assets rose 67% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 53%.

GEOJIT FINANCIAL SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,223	8,314	15.1
Current Liabilities	Rs m	5,201	11,048	112.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,139	20,122	53.1
Current assets	Rs m	8,699	12,696	46.0
Fixed Assets	Rs m	4,440	7,426	67.3
Total Assets	Rs m	13,139	20,122	53.1

GEOJIT FINANCIAL SERVICES Cash Flow Statement Analysis

• GEOJIT FINANCIAL SERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -148 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 446% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 711 million from the Rs -392 million net cash flows seen during FY23.

GEOJIT FINANCIAL SERVICES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	377	-1,241	-
Cash Flow from Investing Activities	Rs m	-166	-148	-
Cash Flow from Financing Activities	Rs m	-606	2,098	-
Net Cash Flow	Rs m	-392	711	-

Current Valuations for GEOJIT FINANCIAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.0, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.6, stands at 18.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	18.4	25.7
TTM Earnings per share	Rs	4.0	6.0
Diluted earnings per share	Rs	4.0	6.0
Price to Cash Flow	x	7.6	9.0
TTM P/E ratio	x	9.9	18.8
Price / Book Value ratio	x	1.8	1.9
Market Cap	Rs m	13,276	15,550
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for GEOJIT FINANCIAL SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.7x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 12.4x during FY24, from 15.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 17.2% during FY24, from 13.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 25.1% during FY24, from 17.6% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.0% during FY24, from 8.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.7	1.1
Debtors’ Days	Days	821	679
Interest coverage	x	15.7	12.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.0	8.0
Return on equity	%	13.4	17.2
Return on capital employed	%	17.6	25.1

To see how GEOJIT FINANCIAL SERVICES has performed over the last 5 years, please visit here.

GEOJIT FINANCIAL SERVICES Share Price Performance

Over the last one year, GEOJIT FINANCIAL SERVICES share price has moved up from Rs 47.1 to Rs 112.6, registering a gain of Rs 65.6 or around 139.3%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for GEOJIT FINANCIAL SERVICES and quarterly results for GEOJIT FINANCIAL SERVICES)